26 Oct PERSONAL FINANCE: MILLENNIALS – PLANNING FOR UNCERTAINTY
It’s hard to predict what the future will bring when you’re young. Where will you be in 5 years? 10? 20? Will you be married? Have children? Living in the same city? Regardless, from a financial standpoint, it’s vital to plan for tomorrow today, and develop a working estate strategy that provides a sound blueprint for managing and distributing your wealth. Doubly so for Millennials, 9 out of 10 of whom want to feel financially empowered – but only 39% are getting professional advice when it comes to investment planning, let alone with such important affairs.
Key Parts of an Estate Strategy
An estate strategy – which defines what happens to you and your assets if you should pass on or become incapacitated – isn’t just for the wealthy. It’s for those wanting to have a solid plan in place for the future. If an estate strategy hasn’t been established, decisions surrounding your finances, healthcare, children, and assets may be made by state courts – and at significant cost. Noting its importance to you and your family’s well-being, building an effective estate strategy is a matter best handled with the help of financial advisors and legal professionals, who can help you create a working plan for tomorrow, and achieve your individual goals.
Estate strategies don’t have to be complex either – some merely consist of a written will. Others may include more customized elements that define your medical care will be overseen or who will make decisions for you should you become incapacitated. No two plans are the same, but some documents you may wish to consider when building an estate strategy include a will (which explains how property will be distributed and children cared for upon death); a living trust (a place to store your assets that a trustee can manage if you become incapacitated, and can provide significant cost savings on death); and power of attorney (which enables someone else to make decisions on your behalf if you can’t decide for yourself due to illness, injury, etc.).
You may also wish to create a health care directive (to define how medical care will be handled) and designate which beneficiaries will receive investments or insurance proceeds upon your passing.